Types Of Credit Card Processing

By Author: Pratik Darmadikari
Total Articles: 36
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A credit card is plastic card issued by several banks as well as financial institutions to the customers to shop at ease on credit. With the help of credit card, the holder gets an opportunity to withdraw or borrow cash at point of sale. Credit cards are used for financing short-term transactions, financial and business dealings. Banks and other financial institutions set the borrowing limits as per the credit ranking of the cardholder.

Credit card processor is also known as merchant service company or merchant service provider.
A merchant service provider is the term which includes banks, financial institutions or third party processors or any organisation that provides organisation or entity with the electronic payment services such as credit cards, debit cards and many other things.

Working of a Credit Card Processing:

A credit card performs business dealing or purchase goods or services on credit from the merchant or organisation. The organisation or merchant captures the information of transactions and inspect as well as cross verifies while swiping.

Several banks and financial institutions lend credit and debit card facilities along with card payment services for business and merchant transactions. There are several different types of credit card processing merchant services as follows:

1. Online Merchant Services: Ecommerce services have made our lives easy. The merchants, organisations, business entity or large corporate houses make optimum utilization of the Ecommerce services to sell goods and services for cash or credit. Online Merchant Services are one of the most convenient services that typically includes trading goods and services with the help of E-World. The merchant services provide exclusive features such as 24/7 customer support, quick and easy shopping, wide range of products along with wide choices available at the customer end.

2. Terminal Merchant Services: Terminal Merchant Services help the merchant to swipe the silver magnetic strip of the credit card while processing the payment of the card holder. The customers generally use the “tap and pay” option to perform financial transactions. The credit cards have a unique feature of RFID (Radio Frequency Identification) chip with the help of which customers can pay via phone or Eservices. This type of merchant services are generally best choices for merchant.

3. Mobile Merchant Services: The Mobile Merchant Services are similar to portable merchant services. The name itself shows that this type of services are used using mobile handsets and cards are swiped with a terminal. Business or financial transactions are performed using Eservices or Internet Services. Majorly door-to-door salesmen or merchants use this service for effective dealing.

4. Manual Merchant Services: This type of merchant service involves manual use of credit cards. Imprinter is largely used to perform business transactions. Imprinter is a machine used to pay manually. Information is noted flawlessly and sent to the merchant’s records. This is a good option to perform straight financial transactions that don’t deal in credit transactions for a higher amount of sale.